Current Securities Class Action Cases

Federman & Sherwood regularly posts press releases about new class action securities cases, which includes the class period and deadlines for appointment of lead plaintiffs. Please review any of the case listings below, and if you bought a security during the class period, we invite you to return an investor certification to our office. Our link to an investor certification for any of the cases can be found below each respective press release on that company. Once completed, please return to our office by email to rkh@federmanlaw.com or fax to (405) 239-2112.

The Advisory Board Company [NASDAQ: ABCO]

Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against The Advisory Board Company

Oklahoma City, OK (August 7, 2017) – On August 3, 2017, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against The Advisory Board Company (NASDAQ: ABCO). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is January 21, 2015 through February 23, 2016. More specifically, the Complaint alleges false and misleading statements and omissions include, but are not limited to, that: (i) the Company experienced significant problems with integration resulting from the acquisition of Royall; (ii) because of the integration problems, there were no grounds for increasing the revenue guidance for Royall during the relevant period; and (iii) as a result of the foregoing, the Advisory Board’s financial statements were materially false and misleading at all relevant times. The Complaint continues to allege that, as a result of Defendants' false statements and/or omissions, Advisory Board stock traded at artificially manipulated prices throughout the Class Period.

Then, on February 23, 2016, the Company disclosed the extent of the problems with Royall. On that date, the Company announced a net loss of $101.8 million for the quarter ended December 31, 2015, compared to a net loss of $5.4 million for the quarter ended December 31, 2014. According to the Company, the increase in net loss was primarily attributable to an impairment charge of $95.7 million (subsequently increased to $99.1 million) to Royall’s goodwill, due to Royall’s “first year performance being below the expectations we had set as of the acquisition date.” Indeed, Royall produced only $118 million in revenue in 2015, compared to defendants’ guidance of $125 million to $130 million.

On this news, the price of Advisory Board stock fell from $36.29 per share on February 23, 2016, to close at $26.50 per share the next day, on extremely high volume of 8.4 million shares.

Plaintiff seeks to recover damages on behalf of all The Advisory Board Company shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, October 2, 2017 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.

To join this class action, click here to obtain an investor certification. Once complete, please email this form to rkh@federmanlaw.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.